For quick reference
PI industries was the second highest recruiter by hiring 5 students.
For quick reference
PI industries was the second highest recruiter by hiring 5 students.
Highlights of Q3 FY18 and Nine Month FY18
Bayer Investor Decks
Dow Dupont Investor Presentation
Few interesting slides ->
Few points ->
Disc - I have sold my entire position over last few days. I am absolutely negatively biased due to my selling & these views shall be taken with a pinch of salt. This is not a sell/buy recommendation.
[quote=“rupeshtatiya, post:1095, topic:227”]
Thanks to wonderful work done by VP community, it was established that PI Ind. has significant relationship with Bayer. With proposed sale of some crop protection businesses to BASF, I am not sure if there will be impact on CSM side. Relative to market cap of Bayer, businesses that will be sold seem not so large in size
BASF will be acquiring seed business from Bayer hence no impact on the Agrochemical manufacturing contracts.
Most of the CSM contracts by nature have some raw material price volatility formula built in and at least in the CSM business which PI is doing for the innovative companies PI will be able to pass on this raw material price hike
This may not be relevant. I have been following PI industries for long and on the other hand, there is some interesting thing happening in the area where I live. (Pune)
People are getting more interested in chemical-free agricultural products and there are three extremely active groups in my area. They are zero budget natural farmers and customers. The activity is tremendous. Farmers in Pune district are being attracted to this farming style which emphasizes on no chemicals added to farms, using no modified seeds. Also, it is NOT organic farming. Even major farmers are turning towards this method and sooner it will be a major thing because of aggressive markets developing.
This farming style is created and promoted by Subhash Palekar. you can google and you-tube his videos and check that his camps are ever increasing.
I have been studying PI industries since last two weeks. Certain points have amazed me. I seek guidance of some expert on that.
1.Till annual report of FY.2015-16, company used to give bifurcation of Raw Material Imported and Procured Ingenuously, from FY.2016-17, that has been suddenly stopped. As far as I know that requirement comes from Sch.3 of Companies act,2013, and not from AS or IndAs, so switching to IndAs should not have bearing on that. The same is the case with Rallis but other Agrochem Cos. have reported the same bifurcation. Can somene tell me under what head now I can find the same bifurcation? Or have that bifurcation been removed altogether.
2. In sale of finished goods section previously company used to report under three broad heads, namely, “1.Speciality Chemical, 2.Agro Chemical and 3.Plant Growth Nutrients”, but from FY2016-17, they have switched them to “1.Active Ingredients and 2.Formulations”. Can someone help me regarding that?
3 I had been going through research report from motilal oswal on PI Ind. In that they have calculated the EBITDA margin for CSM business and Agrochem business, separately and according to them there was vast difference around 400 BPs in the EBITDA margin of both of the businesses. On the contrary, while going through one of the transcripts of recent concall by company where one of the analyst had asked question on the difference of margin of the two businesses and he was replied that company doesnt really treat both of the businesses separately, and more so margin of both of them is roughly equal. Now I am under great dilemma with regard to that. Who is right here, Does company want to keep that secret or its just Motilal People are bluffing to show their analysis more superior and fancy?
Weak Fy18 for PI…
Some signs of improvement seen in H2Fy18…
Commenting on the performance, Mr. Mayank Singhal - Managing Director & CEO, PI Industries Limited, said:
"FY18 has been a challenging year, where the muted growth delivered did not reflect the underlying potential of our business, brands and orders at hand. However, second-half onwards we have seen initial momentum in growth both in the domestic and export markets. The 5 new products that were launched in the domestic market during the year have all been well accepted by the farmers. We continue to invest towards a vibrant product portfolio covering a broader crop profile. There is visible traction in the solutions centric approach we are taking to business, where we are engaging closely with the farmer community through digital initiatives. Similarly, with the aid of modern real-time technology, we are expanding our connects with the retailers and trade channels as well.
Under exports, we saw commercialization of 4 new molecules in the year. Over mid-to-longer term, we can derive comfort from the significant increase in both the enquiries and scale-up pipeline. Further, we are specifically targeting the development of new building blocks in adjacent and novel chemistries with a view to increasing the scope of export opportunity that we can gainfully target.
In line with our objective of both broadening and deepening our presence in domestic and exports market, we will continue to expand our footprints by leveraging our strengths and capabilities. Looking
ahead, the various initiatives undertaken by the Government together with the pick up of demand in global markets are indicating a better performance trajectory in the upcoming years.
A focused approach to drive an innovator-centric portfolio will be the key enabler for growth. We expect domestic revenues to grow on the strength of expected normal monsoon, various Government initiatives and realization of the potential of new and recently introduced products. The domestic market will witness 4-5 new launches in the coming year. In exports, we are expecting volume scale-up in the existing molecules, whereas we intend to commercialize 4-5 new molecules. The plan is also to develop and commercialize new chemistries as part of building new blocks in novel technologies. Whereas our efforts towards pursuing R&D continue to build solutions and expand our offering to the global innovators, our continued investments in capacity expansion in exports are expected to bring fruits in the mid-to-longer term.
Q4Fy18 Results: https://www.bseindia.com/xml-data/corpfiling/AttachLive/bd7d6c84-7f77-48dd-871a-426cfd7b5db7.pdf
Media Release: https://www.bseindia.com/xml-data/corpfiling/AttachLive/7599d930-ed4f-4373-8cac-96b152acc1f2.pdf
This means management guidance of a single digit growth in sales for the year not achieved.
I remember in last concall they had still guided for a single digit growth for the whole year…which was to imply a 25-30% growth in Q4…and sales growth was just 3% in Q4…
So its a guidance miss clearly…
P I Industries Ltd
How does rupee depreciation impact ?
o It is positive for export business but same time the company become more competitive to others .
o In domestic it impact negative to increase price of import of raw material.
PI INDUSTRIES FY18 Annual Report Notes.
Q1FY19 Concall Notes
Reasons for Margin Decline
My View:- Company gave guidance for growth in previous concalls also but that did not pan out as expected, will the company achieve the growth mentioned in this concall remains to be seen. As per the management commentary in concall IND AS 115 (new reporting guidelines) affected the reported numbers of the company and they claimed that the actual numbers were better than reported. Management explained the effect of IND AS 115 but I did not understand it fully as the voice quality of the call was a bit low. Would request other member who attended the concall if they can explain it.
PI Industries has received environment clearance for new 43,240 MTPA capacity at Jambusar plant. Estimated project cost is 393 cr. This is after painstaking ~18 months long approval process. This project include fine chemicals, performance chemicals and specialty chemicals in addition to usual insecticides, herbicides, fungicides and their intermediates.
Seems road block is cleared for multi years of growth ahead.
Congratulations to the PI management and shareholders!!
PI Industries Ltd
Highlights of Q1 FY19
Where is company seeing the capacity constraint ?
o There is more than 25 % increase in manufacturing activity in operation and dispatches just because of the change in accounting standard it is not clearly reflecting but there is certainly ramp up over last 6-9 months and more ramp up company will see in coming quarter. Business is giving assurance of more than 20-25 percent growth which is already in hand so there is no capacity constraint
Domestic business had decreased by 18% in FY 18 Q1 . Now in Q1 19 , it has gone up by 23% . So it is not actual growth, it remains almost same as compared to FY 18.
Last year due to GST bottlenecks, domestic business went down and it has recovered in this year. So what happened to real growth. The company has launched new products, it seems that there’re no real big molecules.
Real picture would come in Q2 . Last year Q2 sales base is high as the material that was not supplied in Q1 (due to GST) was billed in Q2. So last year Q2 was exceptional and contained some carry forward sales of Q1. This year Q2 does not have that advantage. Let’s hope the new molecule launches give some traction. Also Nominee Gold prices have further crashed this year.
Some very thorough analysis about Indian agrochemicals as well as PI and it’s competitors Bharat rasayan, Excel , UPL, dhanuka and rallis.
PI INDUSTRIES - Q2 FY19 (Stand)
Revenue at 723 Cr
561.1 Cr (28.9%) YoY | 605.6 Cr (19.4%) QoQ
PAT of 94.4 Cr
80.3 Cr (17.6%) YoY | 81.7 Cr (15.5%) QoQ
EPS (in Rs.) 6.85
5.84 YoY | 5.92 QoQ